Common Risk Exposures Facing Today’s Manufacturers

Those in the manufacturing world encounter unique and diverse risks daily, arguably more today than ever before in history. There is a high level of risk exposure associated with the increasingly sophisticated equipment, rapid business demand, and remaining competitive in the marketplace. It can be very challenging to effectively keep up with production and logistics. Nowadays, any delays in operations can be devastating to a manufacturing brand. These pressures are important to address. Stay informed about the specific manufacturer risks so you can tackle any obstacle that may come your way.

Cybercrime

With more sophisticated software comes more opportunities for exploitation. Although applications can increase efficiency within the manufacturing process, they could potentially be allowing access to your network. How strong is your data security? Regardless of the product or service you provide, this is a serious issue in the manufacturing business. Consider in what areas cybercriminals could attack your business, such as cardholder information alluring them. An assessment can help you in your preventative measures.

Business Interruption

Some interruption is inevitable, however, it does not have to end up completely disrupting operations. Certain instances may prevent normal operations such as a fire, flooding, other natural disasters, and even employee actions. Without a proper business intrusion plan in place, financial devastation could strike. Even a week down could exhaust your bottom line and make it almost impossible to recover. Even though some things can not be prevented, it is smart to develop a business continuity plan to mitigate risks and manage the impact. This way, the business will still be able to function effectively, even after a horrible incident.

Third-Party Failure

Even if a business is in tip-top shape, third-party issues can disrupt operations. Those you rely on for materials, services, and/or logistics may drastically influence your ability to keep the business functioning properly, as well as comply with regulations. Be sure to assess third-party risks to know where there is exposure that could impact your brand.

Compliance Risk

Regulation and law compliance is a key component in the manufacturing world as it will impact operations and even sales revenue. Be certain to look into regulations for each and every one of your business functions. Also, there will be environmental and financial standards for your unique business, and failure to comply can lead to hefty penalty costs, with a wide scope of consequences from sanctions and fines to reputation issues you can't come back from. Be sure you fully understand what you are up against.

Managing Risk

With so much at risk, it is helpful to come up with a protection strategy. You must know all of your exposures and the level of vulnerability to them. Every business is unique so you will need to assess the specific risks your company faces to prepare for and prevent issues. Uncovering the most relevant and impactful risk will allow you to be proactive. Connect with an NJ Manufacturers Insurance agent for help assessing your risk exposures and to implement a management plan. With strong protection, you can decrease the risk of interruption.

About David G. Sayles Insurance Services

At David G. Sayles Insurance Services, we help our clients decide which of these options is best for them based on their current situation and risk factors.  Contact us at 1-855-977-1842 or insureme@dsayles.mysites.io for a consultation!